Things To Know For The Prospective Investors Of Rapti Hydro & General Construction; IPO Opens From Today For Project Affected Locals
Tue, Jun 7, 2022 7:12 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Rapti Hydro & General Construction Limited (RHGCL) is a public company incorporated on Kartik 5, 2065 (October 21, 2008) as per Companies Acts 2063, Nepal with the objective to develop and invest in hydropower projects. It is currently developing a 5 MW Rukum Gad Hydropower Project in Rukum East District and owns its Electricity generation license. The Project is located at Sisne and Bhume Gaunpalika of Rukum East District. Its registered office is located at Kathmandu-11, Bluestar Complex, Tripureshor.
About the issue:
Rapti Hydro and General Construction Limited is issuing 6,12,793 units of ordinary shares worth Rs. 6.12 crores to the project affected locals of Rukum (Eastern and Western districts) from 24th Jestha, 2078. The early closing date of this IPO issue is on 7th Ashadh, 2079. If this issue is not fully subscribed by the early closing date, then the issue will be extended up to 22nd Ashad, 2079.
Applications can be placed for a minimum of 10 units to a maximum of 6,00,000 units.
Siddhartha Capital Limited has been appointed as the issue manager whereas Muktinath Capital Limited has been appointed as the co-issue manager.
| Rapti Hydro and General Construction Limited | |||
|---|---|---|---|
| Particulars | Percentage | Units | Amount Rs. |
| Total Capital R | 100% | 61,27,938 | 61,27,93,800 |
| Total Issue (Project affected area) | 10% | 6,12,793 | 6,12,79,300 |
| Issue Manager | Siddhartha Capital | ||
| Co-Issue Manager | Muktinath Capital | ||
| Issue Open Date | 24th Jestha | ||
| Issue Closing Date (earliest) | 7th Ashad | ||
| Issue Closing Date (Late) | 22nd Ashad | ||
| Minimum Application | 10 | ||
| Maximum Application | 6,00,000 | ||
Capital Structure:
| Authorized Capital Rs | 1,00,00,00,000 |
| Issued Capital Rs | 61,27,93,800 |
| Current Paid-Up Capital Rs | 31,86,52,800 |
| Capital after IPO Issuance Rs | 61,27,93,800 |
Shareholding Structure:
| Number of Shares | Amount Rs | Percentage | Remarks | |
|---|---|---|---|---|
| Promoters Shareholders | 31,86,528 | 31,86,52,800 | 52% | Already issued |
| Project-affected Locals | 6,12,793 | 6,12,79,300 | 10% | To be issued |
| General Public | 23,28,617 | 23,28,61,700 | 38% | To be issued |
Board of Directors:
| Name | Position |
|---|---|
| Mr. Rohit Rauniyar | Chairman |
| Mr. Kul Bikram Shah | Director |
| Ms. Anjana Shrestha | Director |
Project Information:
| Name of Project | Rukum Gad Jalvidhyut Aayojana |
| Type of Project | Run-of-River |
| Installed Capacity | 5 MW |
| Electricity Generation License received | Ashadh 09, 2072 |
| Generation Valid Date | Ashadh 08, 2107 |
| RCOD | Chaitra 10, 2077 |
| Total Cost in Rs | 1,33,44,28,114.2 |
| Cost per Megawatt in Rs. | 26,68,85,622.84 |
Financial Statement:
| Financial Highlights | |||||||
|---|---|---|---|---|---|---|---|
| Particulars | Actual | Estimated | |||||
| 2075/76 | 2076/77 | 2077/78 | 2078 (Q3) | 2078/79 | 2079/80 | 2080/81 | |
| Total Paid-Up Capital ('000) | 318,652.80 | 318,652.80 | 318,652.80 | 318,652.80 | 612,793.80 | 612,793.80 | 612,793.80 |
| Reserve & Surplus ('000) | 15,175,815.82 | 19,196,713.86 | 20,226,079.44 | 20,573,905.94 | 17,277,182.00 | 62,171,376.00 | 95,030,580.00 |
| Debt ('000) | 265,686,689.04 | 479,035,151.70 | 685,588,609.32 | 787,903,989.32 | 894,500,000.00 | 674,500,000.00 | 649,500,000.00 |
| Revenue ('000) | - | - | - | - | - | 152,038,040.00 | 156,593,478.00 |
| Interest Expenses ('000) | (5,013,220.17) | (56,712.32) | - | - | - | 61,355,019.00 | 53,837,421.00 |
| Net Profit ('0000) | 8,981,998.77 | 4,020,898.04 | 833,430.86 | 347,826.50 | 51,103.00 | 44,894,194.00 | 32,859,203.00 |
| Earnings per share (Rs.) | 2.82 | 1.26 | 0.26 | - | 0.01 | 7.33 | 5.36 |
| Net worth per share (Rs.) | 104.76 | 106.02 | 106.35 | 107.35 | 102.82 | 110.15 | 115.51 |
| Debt-Equity (times) | 17.15 | 24.55 | 33.37 | 37.71 | 50.00 | 10.74 | 6.79 |
| Return on Equity (%) | 5.80 | 2.06 | 0.41 | 0.17 | 0.03 | 7.15 | 3.44 |
ICRA Rating:
ICRA Nepal has assigned the issuer rating of [ICRANP-IR] B+ (pronounced ICRA NP issuer rating B plus) to Rapti Hydro and General Construction Limited (RHGCL). Issuers with this rating are considered to have high risk of default regarding timely servicing of financial obligations.
Key Strengths:
- Presence of experienced institutional promoters.
- Low tariff and off-take risks; however, provision of 10% reserve margin clause in the PPA.
Key Challenges:
- Moderate project execution risk.
- Relatively high project cost.
- Moderate funding risk amid multiple cost revisions.
- High evacuation risk.
- High hydrological risk because of lack of deemed generation clause in the PPA.
